*BlackRock's BUIDL Token Officially Supports frxUSD Stablecoin*

BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) token has been approved by the Frax community to be used as collateral for Frax Finance's Frax-USD (frxUSD) stablecoin. This is to maintain stability and reputation

According to Frax Finance founder Sam Kazemian, this step is part of a broader trend in combining traditional finance with decentralized systems and can be a bridge between the two.

"FrxUSD combines the transparency and programmability of *blockchain* technology with the trust and stability of BlackRock's flagship treasury offering. This collaboration is an important step towards bridging traditional finance with decentralized systems," he said.

For information, the *stablecoin* that has been supported by BUIDL debuted on December 16, 2024, and currently has a market capitalization of around US$70 million. On the other hand, Ethena Labs, the developer of USDE announced a *stablecoin* that is also supported by BUIDL, namely USDtb (USDTB).